LONDON--(BUSINESS WIRE)--After changing the face of the financial services industry in the 1990s, leading entrepreneur Ivan Massow returns to the sector with a groundbreaking new business.
Massow’s traces the ‘trail commission’ charged by Independent Financial Advisers (IFAs) on millions of policies across the country – and puts the money back into the hands of consumers.
Trail commission has been one of the financial services industry’s best-kept secrets – with good reason. It is a percentage taken out of the value of a wide range of investments (from personal pensions to unit trusts) and paid to IFAs throughout the term of the policy. It can amount to thousands of pounds a year, and it is estimated that a staggering £1.6 billion of trail commission is claimed by IFAs annually.
The Financial Services Authority’s forthcoming Retail Distribution Review (RDR) intends to introduce tighter regulations regarding trail commission. But these will apply to new, not existing policies. Furthermore, written evidence ordered by the House of Commons predicts that RDR will cause a mass exodus among IFAs – leaving nearly 10 million consumer ‘orphans’ paying on-going commission with no access at all to financial advice.
Massow's finds any trail commission on existing policies and pays 80% of the full amount back to customers. On a typical pension, the company says this would represent a saving of more than £60,000.
Ivan Massow is joined in this new venture by Sarah Killick, a Chartered Financial Planner with more than 20 years’ experience in the industry.
Says Ivan Massow: ‘As a former IFA, it pains me a little to turn the tables on my own industry. But the trail commission scam must stop. Massow’s will help consumers of all levels and demographics. For many, it will bring them money they didn’t even know they had – at a time when they need it most.’
Ivan Massow is available for selected interviews.
About Massow's
Customers simply apply online, and Massow’s takes care of the rest. Updates are sent to customers’ online Portfolios. Policies remain unchanged and stay with the same provider. Massow’s returns 80% of rebated commission to customers. If the company is unable to track down any commission, it won’t cost clients a penny. Go to paymemy.com
Ivan Massow formed Massow Financial Services in 1990, turning it into one of Britain’s largest and most successful IFAs. The company was originally created to help people having difficulty getting financial products due to their health status, and was the first company in the UK to offer financial solutions for people in high risk categories. Massow went on to chair high-level inquiries into social exclusion in the financial services sector. He has since been a charity campaigner, head of the Institute of Contemporary Arts and a candidate for London Mayor. He will soon feature in C4’s acclaimed documentary series Secret Millionaire.